Disclosures / Forward-Looking Statements
This presentation includes “forward-looking statements.” Forward-looking statements are based on current
expectations and involve known and unknown risks, uncertainties and other factors that may cause our actual results
to be materially different from those expressed or implied. These factors include, among others, our ability to realize
fully or at all the anticipated benefits of our merger with Vanguard and to successfully integrate the operations of our
business and Vanguard’s business; changes in health care and other laws and regulations; changes in economic
conditions; adverse litigation or regulatory developments; the ability to enter into managed care provider
arrangements on acceptable terms; changes in Medicare and Medicaid payments or reimbursement; adverse
litigation or regulatory developments; competition; our success in implementing our business development plans and
integrating newly acquired businesses; our ability to hire and retain qualified personnel; our significant indebtedness;
the availability and terms of capital to fund the expansion of our business, including the acquisition of additional
facilities; adverse fluctuations in interest rates and other risks related to interest rate swaps or any other hedging
activities; the ability to continue to expand and realize earnings contributions from the revenue cycle management,
health care information management, management services, and patient communications services businesses under
our Conifer Health Solutions (“Conifer”) subsidiary by marketing these services to third-party hospitals and other
health care-related entities; and our ability to identify and execute on measures designed to save or control costs or
streamline operations. These factors also include the positive and negative effects of health reform legislation on
reimbursement and utilization and the future designs of provider networks and insurance plans, including pricing,
provider participation, coverage and co-pays and deductibles. These and other risks and uncertainties are described
in “Risk Factors” under Item 1A of Part I of our Annual Report on Form 10-K for the year ended December 31, 2013
(“Annual Report”), “Forward-Looking Statements” under Item 1 of Part I of our Annual Report, and “Forward-Looking
Statements” under Item 2 of Part I of our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014. We
disclaim any obligation to update any forward-looking statement in this presentation, whether as a result of changes
in underlying factors, new information, future events or otherwise.
A reconciliation of Adjusted EBITDA to net income attributable to Tenet common shareholders is included in the
financial tables at the end of the Company’s press release dated May 5, 2014.
- 2 - UBS Global Healthcare Conference May 19, 2014
(a) Includes the Resolute Health Hospital and Wellness Campus
under construction in New Braunfels, Texas
Tenet Healthcare Today A National Diversified Healthcare Services Company
78 Hospitals (a)
UBS Global Healthcare Conference May 19, 2014
78 Hospitals 14 States 20,279 Beds
- 3 -
(a) Includes the Resolute Health Hospital and Wellness Campus
under construction in New Braunfels, Texas
78 Hospitals (a)
190 Outpatient Centers
UBS Global Healthcare Conference May 19, 2014
Tenet Healthcare Today A National Diversified Healthcare Services Company
78 Hospitals 190 Outpatient Centers
- 4 -
Tenet Healthcare Today A diversified provider of healthcare services
78 Hospitals (a) (b)
190 Outpatient Centers
6 Health Plans
7 ACOs
5 CIOs
Illinois
4 Hospitals
4 Outpatient Ctrs
Chicago Health Plan
Missouri
2 Hospitals
5 Outpatient Ctrs
UBS Global Healthcare Conference May 19, 2014 - 5 -
78 Hospitals 190 Outpatient Centers 6 Health Plans 7 ACOs 5 CIOs
(a) Includes the Resolute Health Hospital and Wellness Campus
under construction in New Braunfels, Texas
78 Hospitals (a)
190 Outpatient Centers
6 Health Plans
20 Conifer Service Centers
Conifer Client Locations
in 42 States
UBS Global Healthcare Conference May 19, 2014 - 6 -
Tenet Healthcare Today A National Diversified Healthcare Services Company
Strategy Recap
1. Recognizing that value is paramount, lead industry in improving quality and reducing costs
2. Continue to build our scale through select acquisitions and partnerships
3. Expand into faster growing, less capital intensive, higher margin businesses like Conifer and Outpatient
4. Build strong physician alignment with our employed and affiliated physicians
5. Innovate with new care models, such as Accountable Care Organizations, leveraging our ability to test different models in various markets using our strong balance sheet to take risk
UBS Global Healthcare Conference May 19, 2014 - 7 -
Outpatient Business Has Achieved Rapid
Growth
- 8 -
0
50
100
150
200
30
32
34
36
38
Outpatient Facilities (1) Outpatient Contribution to Revenue (%)
UBS Global Healthcare Conference May 19, 2014
(1) Free-standing outpatient facilities
Conifer: Rapid Growth Across Multiple
Healthcare Services
Revenue Cycle Management
• Industry-leading services and solutions addressing critical margin challenges in today’s reimbursement environment
Value-Based Care
• Patient scheduling, patient intake procedures and medical eligibility counseling services
Patient Communications & Engagement
• Services to healthcare providers, insurers and self-insured employers, including risk-based contract management, patient population management, authorization management and reporting on patient care
Serves 700+ clients
Processes $25 billion in
annual patient revenue
Manages 14 million
patient accounts
Growth opportunities
related to 19 million
patient touch points
UBS Global Healthcare Conference May 19, 2014 - 9 -
Conifer Has Achieved Rapid Growth
- 10 -
0
250
500
750
1,000
Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114
$0
$100
$200
$300
$400
Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114$0
$15
$30
$45
$60
Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114
Clients
Net Revenue EBITDA ($ in mm) ($ in mm)
More than doubled in two years
UBS Global Healthcare Conference May 19, 2014
Transformation To A National Diversified
Healthcare Services Company
Regional Hospital Operator
UBS Global Healthcare Conference May 19, 2014 - 11 -
National Diversified Healthcare
Services Company
Vanguard Acquisition Scale-driven economics & diversification with 7 new markets
Conifer Revenue Cycle
Conifer Value-Based Care ACO, CIO, and related risk-sharing skill sets
Outpatient Business Model
Industry-Leading Clinical Quality
Demonstrated Cost Discipline
Well-Positioned to Benefit from ACA
Op
era
tin
g Fo
un
dat
ion
Healthcare Reform Is Tracking Nicely So Far
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Volume Mix Shift in Expansion States
( Q1’14 -- # / % )
Medicaid
Uninsured +
Charity
Inpatient Admissions
2,459 / 17%
(866) / (33)%
Outpatient Visits
23,565 / 17%
(11,737) / (24)%
ED Volume
22,100 / 25%
(10,597) / (28)%
Medicaid volumes are up significantly in expansion states while uninsured and charity volumes experienced large declines (1)
(1) Medicaid expanded in Arizona, California, Illinois and Massachusetts effective 1/1/14. Michigan expansion was effective 4/1/14.
UBS Global Healthcare Conference May 19, 2014
Payer Mix Trends Are Largely Favorable With
Clear Differences In Medicaid Expansion States
- 13 -
(1) Volume changes are on a pro forma basis. Medicaid programs in Arizona, California, Illinois and Massachusetts expanded 1/1/14. Michigan expansion became effective 4/1/14. The four Jan 1 expansion states contain 25 percent of THC’s beds. Michigan’s April 1 expansion raises the percentage of beds in Medicaid expansion states to 34 percent beginning Q2’14.
(2) Patients who we believe are eligible for Medicaid benefits but have not yet been approved for Medicaid benefits at quarter-end are reflected in the quarter’s Medicaid volume statistics using Tenet’s legacy historical conversion rate for successfully qualifying these patients for Medicaid. Until the Vanguard facilities are fully under Conifer, certain legacy Vanguard facilities retain pending Medicaid patients in an uninsured status until final Medicaid status is determined.
Payer Mix Shift (Q1’14)
Expansion States (1)
Non-Expansion States
Total
Medicaid(2) Uninsured + Charity
Medicaid(2) Uninsured + Charity
Medicaid(2) Uninsured + Charity
Admissions
17%
(33)%
(1)%
2%
4%
(5)%
OP Visits
17%
(24)%
1%
(10)%
6%
(14)%
ED Volumes (Total)
25%
(28)%
2%
(6)%
9%
(11)%
UBS Global Healthcare Conference May 19, 2014
Highlights - Q1’14
- 14 -
9% increase in Adjusted EBITDA on an apples-to-apples basis(1) … approaching top quartile of Q1’14 Outlook range
Volume trends strengthening
Reform impact is tracking expectations
Growing higher-margin, faster-growing, capital-light businesses
Vanguard integration is proceeding smoothly
Confirming 2014 Outlook of $1.8 to 1.9 billion in Adjusted EBITDA
Q1’14 progress advances Tenet’s transformation from a regional operator of hospitals to a national diversified healthcare services company.
UBS Global Healthcare Conference May 19, 2014
(1) Refer to the Company’s 5/5/14 presentation posted on Tenet’s website for further information on the year-over-year comparison